SAN FRANCISCO — The reviews are in, and they are giving zero stars to Yelp.
The San Francisco-based online review and recommendation company watched its shares plummet more than 26 percent Friday, to close at $31.93, following what could only be called a disappointing quarterly earnings report and outlook. Late Thursday, Yelp said that it added no net new advertising customers during its third quarter, as the company saw the effects of a change in the kinds of contracts it offers.
UBS analyst Eric Sheridan said in a research report that Yelp’s results show “key debates on (its) business transition and (management) execution” are likely to come to the forefront of investors’ concerns about where Yelp stands in the market for local-based online advertising.
